Most millennials nowadays focus on getting a good paying job, buying a new car and saving money in the bank. However, you also need to look at the bigger picture and start investing for your future. One of the smartest things that you can do is start spending on the real estate property while you are still at the peak of your career and can earn good money.
You may not realize the value of owning real estate for now, but you will thank yourself in the future for making such a wise decision. Real estate not only provide you with a lifetime of property even after you are no longer there, you can also use it for multipurpose trades or even rent it to earn extra profit. If you are not yet entirely convinced, here are some of the best reasons why you should invest a portion of your earnings in real estate.
1. It feels good to own a physical asset:
Do you want to see the fruit of your hard work? Then why not buy a piece of property as proof that your money is invested wisely. You never know when crisis and financial setbacks will come into your life, but at least you will have a property that you could sell for a high price. Also, it feels good knowing that you have accomplished something significant and of high value at such a young age.
2. It is an excellent way to expand your earnings:
Most financial experts tell their clients not to put all their eggs in one basket and not to just rely on a single source of income. Owning real property allows you to diversify your cash flow by turning it into a rental property.
Many millennials across the world have bought many properties in tourist places, only to give it as a rental to tourists. In this way, they are not just earning from their separate income, but they are also benefitting from their conjugal investment.
However, if you happen to share a common wall with some of your neighbors then you might encounter some problems. The best course of action is to get in touch with a party wall surveyor who can give you expert advice on how to proceed with any renovations.
Having tenants is an excellent way to make extra money without the need to work two or three jobs at a time. You can anticipate how much rent you should be collecting each month and you can use a portion of your earnings to pay off the mortgage. Some of the money can go straight to your savings account or you can reinvest it in other things.
3. Owning properties can give you good value for your money:
When investing in properties, it is more important to consider the location rather than the structure that comes with the land. Choose to buy a property where more business developments are most likely to happen within the next few years even if it means paying more money.
Should you decide to have the place rented you can quickly look for tenants that are willing to pay premium monthly fees in exchange for a perfect location. If you want to sell your property in the future, you can demand an excellent asking price from potential buyers because of its prime location.
Real estate is one of those investments which prove to be profitable over time because their demand and their value never decrease. Therefore, you can have added value in the time of selling.
Say suppose you bought a resort back in 2001 with say $5000 and the current value of the resort in 2019 $55000 because the place has an added environment favoring weather, and other scenic features. You have a profit triple the money you had invested.
More and more people are showing serious interest in real estate property because they have come to realize that it is a safe way to grow their money in the long run.